In its last circular, the RBI made its stand clear that the intent of levying penal charges is to inculcate a sense of credit discipline and such charges are not meant to be used as a revenue enhancement tool over and above the contracted rate of interest.
RBI has extended the deadline for introduction of new penal charges regime by three months upto April 1, 2024. The guidelines released in Aug this year stipulated that the penalty for non-compliance will not be in the form of penal interest
The apex bank said the states will raise Rs 4.13 lakh crore in the fourth quarter. Besides Bengal, states such as Madhya Pradesh, Maharashtra, Gujarat, Bihar, Andhra Pradesh, Karnataka, Punjab and Assam are in the fray
RBI regulated entities, which include banks and NBFCs, have been asked to ensure that the instructions are implemented in respect of all the fresh loans availed from April 1, 2024, onwards